Property Details
Basic Information
Rare 765-Unit Student Housing Portfolio in High-Demand Tier-1 University Market – Value-Add & Class-A Blend
This is a rare opportunity to acquire a diverse, high-performing student housing portfolio strategically located at the University of Illinois Urbana-Champaign (UIUC), one of the country’s top public research institutions with 59,000+ students and a supply-demand imbalance in purpose-built housing.
The $160 million portfolio comprises 765 units and 1,544 beds across 20 properties grouped into six investment tranches, offering a blend of stabilized Class-A assets, vintage repositioning plays, and operational efficiency upgrades. With projected 10-year returns of 20% IRR and a 3.77x equity multiple, this portfolio delivers strong near-term cash flow with deep long-term value creation upside.
Average unit size across the portfolio is 714 SF with average in-place rent of $868 per bed, well-positioned below market in a highly constrained supply environment. The University’s limited housing pipeline (just 365 new beds) and consistent enrollment growth make this a prime opportunity to scale in a Tier-1 university market.
Backed by experienced operators (JSM & The University Group) remaining as co-GPs, the platform offers immediate operational continuity with upside via consolidated leasing, material warehousing, and utility bill-backs. The portfolio maintains near 100% occupancy year over year.
Property Facts:
Total Portfolio Value: $160,000,000
Required Equity: $46,000,000 (70% LTV)
Beds: 1,544
Units: 765
Avg. Rent: $868/bed
Avg. Unit Size: 714 SF
Location: Urbana-Champaign, IL (within walking distance of UIUC)
Occupancy: Consistently near 100%
Year Built: 1960s–2024
Tranches: Six (1A, 4P, A, B, C, D)
Projected IRR: ~20%
Equity Multiple: 3.77x
Co-GPs: JSM (Tranches A–D), The University Group (Tranche 4P)
Key Highlights:
Tier-1 University Market: University of Illinois Urbana-Champaign enrolls over 59,000 students, with demand for student housing far outpacing supply. 28,000+ students lack access to purpose-built beds.
Diverse Asset Mix: Portfolio spans newly built Class-A construction (delivered 2024) to 1970s-era buildings with strong repositioning potential.
Stabilized Cash Flow: Near-full occupancy and in-place leases create immediate NOI, with built-in upside through operational efficiencies.
Experienced Sponsors: JSM and The University Group bring local market knowledge, established leasing infrastructure, and operational track records.
Immediate Rent Upside: Units are currently rented at below-market rates with room for organic rent growth and bill-back enhancements.
Investment Highlights:
Institutional-Grade Returns: 20% IRR, 3.77x equity multiple, and 20% first-year CoC yield on a 10-year hold — ideal for value-add institutional investors.
Efficient CapEx Deployment: Focused on operational streamlining (e.g., utility bill-backs, reduced payroll, in-house maintenance supply chain) vs. heavy construction.
Clear Operational Plan: Implementing consolidated leasing, flat-rate management fees, and modest unit refreshes to reduce expense ratios from 55–70% to 30–40%.
Tranche Customization: Buyers can select from Tranches 1A to D based on risk profile — from turnkey Class-A to high-margin vintage rehab plays.
Compelling Cost Basis: Cost per bed and per unit remain well below replacement value, providing a defensive entry point in a constrained market.
Location Highlights:
Walkable to Campus: Most properties are within 0.25–0.5 miles of UIUC — a strong demand driver for undergrads seeking access and convenience.
High Enrollment Growth: UIUC has added over 6,000 students since 2015 with continued demand from both domestic and international applicants.
Low New Supply: Just 365 purpose-built beds are currently in the development pipeline — well below projected housing needs.
Rent Growth & Stability: Urbana-Champaign student housing has shown resilience in both up and down markets with consistent rent escalations.
Top Academic Destination: UIUC is ranked #12 among public universities by U.S. News, fueling long-term enrollment strength and national brand recognition.
This 765-unit, 1,544-bed student housing portfolio offers a rare, large-scale acquisition opportunity with a compelling blend of stabilized income and strategic upside. Situated in one of the Midwest’s premier university markets and managed by deeply experienced operators, this portfolio is designed for yield, growth, and long-term value. Whether you’re seeking Class-A stability, value-add renovation plays, or a balanced institutional portfolio — this opportunity delivers.
Reach out to request tranche-level financials, OM access, and to initiate NDA review.
